Government & Military Smart Grids & Microgrids Symposium Topical Report on DOE Smart Grid ARRA Microgrid Projects Steve Bossart Senior Energy Analyst April 9, 2014 Arlington, VA

Topics DOE Topical Reports on Smart Grid ARRA Projects Microgrids Motivations and Challenges Results from DOE Microgrid Projects

Topical Reports

Topical Reports Analyze results from SGIG, SGDP, and RDSI Summarize results Report similarities, differences, and range of results Rationalize results Common best practices and lessons learned Connect investments with functions with benefits Connect smart grid with improved DER functionality Educate

Topical Reports Microgrids Dynamic Line Rating Phasor Measurement Units Distributed Energy Resources Transactive Energy Communications Conservation Voltage Reduction PUC Filing Review Consumer Behavior Studies AMI/smart meter O&M Peak load reduction Volt/VAR optimization Reliability Applications and Benefits of Smart Meter/AMI Others?

Microgrids Definition, Concepts, Motivations, Benefits, Technologies & Challenges

Microgrids & Smart Grids Central Generation Transmission Load Distributed Generation E-Storage Distribution Microgrid Includes DER & Load Defined electric boundaries Single controllable entity Connect and disconnect from grid Grid-connected or island-mode

A Possible Future Distribution Architecture Municipal Microgrid Distribution Control Utility Microgrid Military Microgrid Industrial Microgrid Campus Microgrid Commercial Park Microgrid

Motivations for Microgrids Reliability Impact on business Grid reliability is worsening Resiliency Ability to withstand challenges and continue operation Value of microgrids during Superstorm Sandy Economic Best energy mix is 80-89% from microgrid and 11-20% from main grid Sustainability/emissions reduction Microgrids during Sandy Brevoort Toweer – CHP microgrid NY Presbyterian Hospital Fairfield University Campus Co-Op City Campus Princeton University

Why Microgrids? Support integration of smart grid & renewables Ease application of combined heat & power Local generation reduces electricity losses Disperses investments between central and local assets Assist in reducing peak load Serve critical loads Provide local power quality & reliability Promotes community involvement & energy independence Provide local power during outages Supports main grid Provide ancillary services to main grid Manage variability of loads and renewables locally

Cost of Electric Service $363 billion is annual electric bill in US (2013) $200 billion is paid by commercial and industrial firms Value of business losses is $80 - $150 billion annually (LBNL and EPRI studies) Interruption Cost Estimate Calculator (ICE) http://icecalculator.com/

Types of Microgrids End user Utility distribution Remote/island systems Size 2 MW to 40 MW are economical – average and above cost of electricity (COE) < 1 MW are economical where COE is higher Hawaii, Alaska, Northeast Portfolio Mix Balance resources with high capital cost and low O&M with resources with low capital cost and high O&M

Common Technologies in Microgrid Projects Generation and Energy Storage Renewable energy (PV, wind) Distributed generation (microturbines, fuel cells, diesel) Combined heat and power Energy storage (thermal storage, batteries) T&D Communications (wireless, PLC, internet) Advanced metering infrastructure & smart meters T&D equipment health monitors (transformers) Power inverters Consumers Plug-in electric vehicles and charging stations (PHEV/PEV) Smart appliances & programmable thermostats (DR/DD) Home Area Networks & In-Home Displays Energy management systems

Barriers to End User Microgrid Deployment Very young in financing lifecycle Majority of microgrids involve third-party financing Requires long-term service agreements (PPA) Regulatory environment has not been favorable Microgrids must be “good citizens” Conflict in allocation of utility costs to accommodate microgrids Value proposition may be unclear Technology Optimize controls to improve value Rapidly improving technologies (e.g., energy storage) Private wire laws

DOE OE Microgrid Demonstration Program

DOE-OE Primary Microgrid Field Projects Renewable and Distributed Systems Integration Projects Chevron Energy Solutions - CERTS Microgrid Demo City of Fort Collins - 3.5 MW Mixed Distributed Resources Illinois Institute of Technology - IIT Perfect Power Demo San Diego Gas & Electric - Borrego Springs Microgrid Smart Grid Demonstration Projects (ARRA) Battelle – Pacific Northwest Smart Grid Demonstration LA Dept. of Water & Power Smart Grid Regional Demo Southern California Edison Irvine Smart Grid Demo Microgrid FOA released on January 31, 2014 Proposals due April 28, 2014 - Advanced control of microgrids

DOE OE Primary Microgrid Project Locations SDG&E Battelle SCE Ft Collins Chevron IIT LADWP RDSI SGDP

Common Objectives Among DOE’s Microgrid Projects Reduce peak load Benefits of integrated DER (i.e., DG, DR, e-storage) Ability to integrate variable renewables Operate in “islanding” and “grid parallel” modes Import and export capabilities Two-way communications (frequency, verification, data latency) Data management Price-driven demand response Dynamic feeder reconfiguration Outage management (i.e., number, duration, and extent) Volt/VAR/frequency control Balance distributed and central control Cyber security Interconnection and interoperability Defer generation, transmission, and distribution investments

Smart Grid Demonstration Program (SGDP) Number of Projects Selected Projects Total Funding $1,647,637,256 Total Federal Funding $620,027,274 Total Number of Projects 32 Demonstrate emerging technologies (including energy storage) and alternative architectures Validate business models Address regulatory and scalability issues Large projects: $20M-$89M Small projects: $720K-$20M (Federal share) 4-year projects (average) SGDP Recipient Types The 600 million dollars for the demos focus primarily on EMERGING TECHNOLGIES And validating these technologies and the business case for them Non-Profit, 9%

San Diego Gas & Electric - Borrego Springs

San Diego Gas and Electric Borrego Springs Microgrid Substation Energy Storage 1 x 500kW/1500kWh Li Ion Distributed Energy Resources 2 X 1.8MW Diesel Customer Energy Management Microgrid Controller Home Energy Storage Feeder Automation Community Energy Storage 3 x 25kW/50kWh Li Ion

Customer Energy Management Capable of Responding to Price and Reliability Events

Field Demonstration Objectives Load reduction Reduce peak load of feeders System reliability Integration and management of DERs Leverage various DG and energy storage assets Enable customers to be active participants in managing their energy use

Energy Storage Peak Shaving Demo Main Grid Total Load

Island Demonstrations – 2/13/13

CES PV Smoothing Operation Red – PV power Blue – Impact of energy storage

Real World Experience

Damage to Power Infrastructure in Borrego Springs

Contact Information Merrill Smith & Dan Ton Program Managers Microgrid R&D U.S. Department of Energy Office of Energy Delivery and Energy Reliability Merrill.smith@hq.doe.gov (202) 586-3646 Dan.ton@hq.doe.gov (202) 586-4618 Steve Bossart Senior Energy Analyst U.S. Department of Energy National Energy Technology Lab Steven.bossart@netl.doe.gov (304) 285-4643 Key Microgrid Resources: DOE OE www.oe.energy.gov Smart Grid www.smartgrid.gov